Top 5 Questions to Ask an Investor

You can read dozens of books, study the strategies of the best financial gurus and… still burn out. Because no one knows your situation better than you. To increase your chances of success, just read the questions to ask an investor.

What Are Top 5 Questions to Ask an Investor?

There are quite a few companies that work without an organizational structure drawn “on paper”, and successfully. Perhaps for some time, such organizations will still be able to hold out, but they have little chance of outperforming their competitors. What should we pay special attention to?

  1. What is your target market?

An investor may not be interested in a good project, but with a very narrow market. A striking example is booking tables in restaurants via the Internet. In five years, such a company will reach less than $10 million in value. It is unlikely that it will be possible to get a decent return on investment in this project. This does not mean that such a company will become a bad business. A specific entrepreneur will be able to earn on online table reservations, but not a venture investor.

  1. How do you feel when thinking about a particular investment?

Investing money is an emotional process. Prices can rise and fall, so it is almost impossible to remain calm all the time. But you should, as far as possible, avoid making decisions in moments of emotional instability.

  1. How do you reduce risks?

If we do not have expertise in some areas, investors involve consultants who help to deal with incomprehensible things. They look at the business itself, the legal details, the finances, the technicalities — break down all the categories to see the big picture. After that, it becomes clear what the risks are, how to work with them, and whether it is worth investing in a startup in principle.

  1. An existing problem in the market and what is your solution?

Decide for yourself whether you are imagining a problem because you simply like your project. To understand the need for your service or product, you need to conduct tests and research in advance. Investors are not stupid people, and, for sure, will be able to understand what’s what.

  1. How much time are you willing to devote to a new project?

It is necessary to determine the level of employment of the investor. If the investor has little time, then he will prefer the passive option, if he wants to take part in the project himself, then the active one.

How to Formulate Correct Entrepreneurs Questions?

It is necessary to have a plan for the replacement of managers and entrepreneurs questions for at least three levels of management – the general director, his deputies, and heads of functional areas. For a new company, advanced organizational planning is a matter of life and death; often on such formal grounds, it is possible to quite objectively assess the manageability of the organization. Unlike a local repository, you will have a team of cybersecurity experts from around the world who will continually help protect your company’s resources and data.

The system of user rules for application activity, access to the file system, peripheral devices, and network resources, together with the monitoring and logging system, makes it possible to control and stop malicious or careless actions of employees, protecting information from unauthorized access. Centralized management and system modularity reduce administration costs.